London's financial market is braced for a contraction in the wake of the country's decision to leave the European Union. One of the banks considering its options is Switzerland's No. 1, UBS. Chairman Axel Weber has now come up with a new figure for how many jobs will have to be moved to other offices.
Brexit will mean job cuts in the City. That much seems clear. UBS has repeatedly said it will have to reduce its staff based in London. Sergio Ermotti, the chief executive, in September mentioned the number of 1,500 bankers who might have to move to other places.
Axel Weber on Wednesday told the BBC that 1,000 bankers would be shifted to other offices should the U.K. lose its access to the common market.
Contingency Planning
Weber also said that the bank was waiting to see what exactly the Brexit deal will look like. Still, the bank had made contingency plans for all eventualities. UBS has some 5,000 employees in London.
Whether it will mean a cut of a 1,000 or 1,500 in the case of UBS, the effect of Brexit on the City will be massive. It is likely that the relocation of bankers will begin as soon as the U.K. invoked article 50 and initiated the divorce negotiations with the EU, set to begin in the spring.
Most jobs are likely to be moved to Frankfurt, according to sources within UBS.
